Grants for First Time Home Buyers
As a first time home buyer you may not have experience with how quickly home related expenses can add up, and they could be large amounts. You likely have your down payment together and closing costs but other items might come up sooner than you anticipated. Luckily there are a number of grants specifically for those who are buying their first home to help ease the financial stress that can happen. Here are some of the best grants waiting for you!
Home Buyers Tax Credit
The first year after you buy your home you will be eligible for a credit on your income taxes. This rebate is a one time credit, and is available to everyone who purchases a home for the first time. The amount you receive back will be dependent on your tax bracket but it works out to be about $750 for most people.
Land Transfer Tax Rebate
When you purchase a home, there is a tax paid on transferring the title of the land from the previous owner’s name into yours. The amount eligible for rebate does depend on where you live but it will cover most, if not all, of your land transfer taxes. This will be a rebate applied at closing, and you don’t have to pay the amount of upfront.
RRSP Home Buyers Plan
If you withdraw money from your RRSP it is usually considered taxable income, however if you take out money from your RRSPs to use as a down payment towards your home then you are given a pass on the income tax. There are some rules and regulations around the money taken out, but your mortgage broker will be able to help you with that information. You must begin to pay the money back within 2 years of purchase, and the total amount used towards the down payment must be repaid within 15 years of purchasing the home.
New Housing Rebate
This program was developed to help first time home buyers with the HST paid on a newly built home, renovating an old one or replacing one lost by fire. Ontario offers an option for buyers to receive the entire HST amounts whereas many other provinces only allow home buyers to receive the GST portion which is collected by the federal government.
Buying a home is the biggest purchase you’ll make in your life, and it’s an important milestone for everyone as it signifies a level of independence. When it comes to making this big of a purchase all rebates and grants you can receive will help to ease the financial stress you might be experiencing during this time. If there are any additional grants or rebates you might be eligible for your mortgage broker will discuss these with you and help ensure you get the biggest rebates possible. Now it’s time to enjoy your new home and start decorating it exactly as you’ve always imagined!